ITAR/EAR Conventional Arms Transfer

The US Department of State has issued a Fact Sheet on 8 November 2018 regarding the Conventional Arms Transfer (CAT) Policy Implementation Plan Update.

In July the Secretary of State submitted to the President the Implementation Plan requested as part of the Conventional Arms Transfer (CAT) Policy (NSPM-10). This plan supports the U.S. National Security Strategy through a whole-of-government approach to better align our conventional arms transfers with our national security and economic interests.

In developing the CAT Policy Implementation Plan, and in order to ensure that it is fully integrated the real-world challenges we face, the Administration collected inputs from Congress, American industry and the non-governmental community. We are grateful for their cooperation in this process.

The Plan accounts for the increasingly competitive environment described in the National Security Strategy, and seeks to modernize the U.S. Government’s policies and processes regarding arms transfers. It establishes three Lines of Effort (LOE) to implement our CAT Policy goals. Each LOE is supported by a number of tasks that will be undertaken by the relevant U.S. Government agencies.

Line of Effort 1 – Prioritize Strategic and Economic Competition .

This LOE directly addresses the challenges of increasing strategic competition, and enables the U.S. Government to prioritize allocation of its resources to overcome those challenges. It reorients the United States to a more proactive approach to arms transfers, and ensures these transfers reflect the priorities articulated in the National Security Strategy (NSS), the National Defense Strategy (NDS), the recent Report on Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States that was mandated by Executive Order 13806, and other relevant strategic guidance.

Tasks within this line of effort include:

Effectively compete with strategic competitors by providing allies and partners with alternatives to foreign defense articles in order to maintain U.S. influence in key regions;

This LOE ensures that the Executive Branch is organized, staffed, and resourced to best support efficient execution of the conventional arms transfer policy, and that its processes are similarly aligned.

Tasks under this LOE include:

Streamline the International Traffic in Arms Regulations (ITAR), with the goal of reducing regulatory burdens for U.S. industry and barriers to the commercial defense trade;

Revise the United States Munitions List (USML) to ensure that it clearly describes and adequately controls only those items that merit USML control;

Update the Commerce Control List (CCL) to account for technological developments, practical application issues identified by exporters and re-exporters, and changes in the military and commercial non-military applications of controlled items;

Facilitate exports for certain U.S. and cooperative programs so that the U.S. government has the needed flexibility to execute its mission;

Request from Congress, where needed, legislative changes regarding contracting requirements for FMS, in order to enhance the speed of the contracting processes and lower unit costs for U.S. military services;

Establish an Offset Task Force to develop recommendations, in consultation with industry, on actions that could be taken to minimize the adverse impact of offsets in defense trade while not hindering the flexibility of U.S. industry as it competes in the global defense market;

Modernize the Missile Technology Control Regime to reflect advances in technology while continuing to constrain the proliferation of systems that can deliver weapons of mass destruction;

Improve trade promotion and expand U.S. Government engagement in support of American defense manufacturing; and

Work with U.S. industry to incentivize increased production capacity and timely delivery, including by developing strong and stable market signals and by utilizing contracting approaches that reward faster delivery.

Progress and the Way Ahead

The Administration is assessing progress on a quarterly basis, and revising the plan where needed. We continue to solicit input from industry, non-governmental organizations, and Congress to improve the arms transfer process, as well as feedback on the results of our efforts. To date, the Administration has made great progress in developing strategies to compete against strategic and economic rivals, has revised numerous policies to increase U.S. competitiveness, has reduced costs, is on track to streamline regulations and improve processes, among other accomplishments.